OR HB3962

Amends ORS 320.350 to change the required allocation of local transient lodging tax revenue from at least 70% for tourism purposes to at least 40%, and increases the maximum allowed for city/county services from 30% to 60%

Expands allowable uses of lodging tax revenue to include city or county services provided by a special district in lieu of the city or county directly providing those services

Allows local governments with grandfathered transient lodging tax regimes (established before July 1, 2003) to use unexpended net revenue under the new allocation percentages

Permits local governments to decrease the percentage of lodging tax revenues expended on tourism promotion regardless of when their existing percentage requirements went into effect

Takes effect on the 91st day following adjournment sine die, with amendments becoming operative on January 1, 2026